Appraisal Letter Generator
Appraisal Letter
Dear ,
We are pleased to inform you that, based on your performance appraisal for the review period, the management of has approved a revision in your compensation and designation.
In recognition of your dedication, consistent performance, and valuable contributions to the organization, the following revisions have been approved:
Your current designation of has been revised to . Your current annual CTC of has been revised to . These changes shall take effect from .
This appraisal has been determined on the basis of your individual performance, your contribution to team objectives, and the overall assessment provided by your reporting manager, . The management acknowledges and appreciates the effort and commitment you have demonstrated during the review period.
The revised compensation structure, including the updated breakdown of basic salary, allowances, statutory deductions, and other applicable components, will be reflected in your payroll with effect from the aforementioned date. A detailed compensation annexure is enclosed for your reference.
Please note that all other terms and conditions of your employment, as stated in your original appointment letter and subsequent amendments, shall remain unchanged and in full force unless explicitly communicated otherwise.
We trust that you will continue to uphold the highest standards of professional excellence and make meaningful contributions to the growth and success of . The organization values your commitment and looks forward to your continued association.
We wish you all the very best in your revised role and encourage you to continue striving for excellence.
Sincerely,
Accepted by,
An appraisal letter is a formal HR document that communicates salary revisions and performance recognition to an employee. It's also called a salary increment letter, pay raise notification, or performance review letter.
The letter details the revised CTC, increment percentage, effective date, and often includes acknowledgment of the employee's contributions during the review period.
A well-crafted appraisal letter boosts employee morale, reduces attrition, and reinforces the connection between performance and rewards.
Hyring's free appraisal letter generator helps organizations create professional, accurate salary increment letters in minutes.
What to Include in an Appraisal Letter
Begin with genuine acknowledgment of the employee's performance. Reference specific achievements, projects delivered, or targets met.
The compensation revision section should include:
- Previous CTC vs revised CTC
- Increment percentage and effective date
- Updated salary break-up (basic, HRA, special allowance, bonus)
- Changes to variable pay, stock options, or ESOP grants
If the appraisal includes a promotion, clearly state the new designation, updated responsibilities, and revised reporting structure.
End with forward-looking expectations and goals for the next review period.
Types of Appraisal Letters
Annual appraisal letter: Issued during the yearly review cycle based on performance ratings and budget allocation. This is the most common type.
Performance-based increment: Issued outside the regular cycle for exceptional contributions or project completions. A powerful retention tool.
Promotion letter with revision: Combines role elevation with a salary increase. The increment is typically higher than a standard merit raise.
Retention-based appraisal: Issued to prevent valued employees from leaving, often in response to a competing offer.
How to Create an Appraisal Letter
- Enter the employee's name, current designation, and department.
- Specify previous CTC, revised CTC, increment percentage, and effective date.
- Add performance highlights and achievements for personalisation.
- Configure any designation changes or benefit updates.
- Download as PDF or DOCX—free, no sign-up needed.
Best Practices
Use a positive, appreciative tone. Start with genuine praise before presenting the numbers. Avoid generic language—personalise each letter.
Provide a complete salary break-up. Employees appreciate knowing exactly how their new CTC is structured.
Deliver the letter promptly after the appraisal decision. Ideally, discuss it in person first, then follow up with the formal document.
Timing matters—delays in issuing appraisal letters can create anxiety and reduce the positive impact of the increment.